Professor of Finance at Andrews University, Prof. William Kwasi Peprah, has warned that South Africa could suffer significant economic consequences if tensions with Ghana and other African countries lead to a decline in trade and investment relations.

According to him, South Africa’s position as one of Africa’s largest economies means any deterioration in its relationship with key trading partners on the continent could have far-reaching effects on production, exports, revenue generation and employment.

Speaking on JoyNews' The Pulse, Prof. Peprah said South Africa’s economy relies heavily on sectors such as mining, tourism, banking, financial services and manufacturing, many of which have strong links across Africa.

He explained that if African countries begin reducing their dependence on South African goods, services and companies, it could directly affect businesses operating from South Africa.

“If exports are affected, South African investment outside the country is going to suffer,” he said, adding that companies with significant operations across Africa could see their profits decline.

Prof. Peprah noted that reduced exports and lower business activity could translate into job losses and increased unemployment in South Africa.

He added that the impact would not be limited to South Africa, as other African countries could also face challenges due "to increased costs of doing business and disruptions in economic cooperation."

The finance professor stressed that economic integration under the African Continental Free Trade Area depends on stronger cooperation among countries and warned that rising tensions could undermine efforts to deepen intra-African trade.

He urged African countries to resolve the current concerns through dialogue and diplomacy while focusing on areas where each country has a competitive advantage.

Prof. Peprah’s comments follow growing concerns over recent xenophobic attacks targeting Ghanaian and other African migrants in South Africa, which have triggered discussions about diplomatic and economic relations between Ghana and South Africa.